ZURICH - Amcor Tobacco Packaging announced on 18 Aug 2014 that it plans to build a tobacco packaging plant in Indonesia. The production facility is expected to be fully operational in East Java by late 2015.

Indonesia is the third largest tobacco market in the world, and the second largest market in Asia, with tobacco cartons predominately supplied by in-house printers. As Asian tobacco manufacturers move toward outsourced supplier models in order to focus on their core tobacco business, Amcor's presence in Indonesia will offer new contingency options to the tobacco industry and will introduce strong innovation capabilities to serve the market's increasingly complex packaging needs.

Over the past three years Amcor Tobacco Packaging has grown its market share in Indonesia by supplying packaging from the company's existing sites in Asia, including Korea, Malaysia, the Philippines and Singapore.

In making the announcement, Amcor Tobacco Packaging President Peter Konieczny said, "Amcor will be the first international tobacco packaging player to establish a manufacturing presence in Indonesia, bringing new jobs, technology, and innovation to the country. This move underscores Amcor's long-term commitment to grow with its customers - especially in emerging markets - and to contribute to the Indonesian economy."

In addition to serving the Indonesian market, this plant will also produce for export markets, offering in-line flatbed, rotary gravure, and off-line capabilities to a network of customers across Asia.